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The Good Shroom Co (The Good Shroom Co) Gross Margin % : 35.89% (As of Jan. 2024)


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What is The Good Shroom Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Good Shroom Co's Gross Profit for the three months ended in Jan. 2024 was $0.25 Mil. The Good Shroom Co's Revenue for the three months ended in Jan. 2024 was $0.69 Mil. Therefore, The Good Shroom Co's Gross Margin % for the quarter that ended in Jan. 2024 was 35.89%.


The historical rank and industry rank for The Good Shroom Co's Gross Margin % or its related term are showing as below:

TGSHF' s Gross Margin % Range Over the Past 10 Years
Min: 18.85   Med: 21.02   Max: 26.23
Current: 26.23


During the past 3 years, the highest Gross Margin % of The Good Shroom Co was 26.23%. The lowest was 18.85%. And the median was 21.02%.

TGSHF's Gross Margin % is ranked worse than
79.82% of 109 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 37.31 vs TGSHF: 26.23

The Good Shroom Co had a gross margin of 35.89% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Good Shroom Co was 0.00% per year.


The Good Shroom Co Gross Margin % Historical Data

The historical data trend for The Good Shroom Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Good Shroom Co Gross Margin % Chart

The Good Shroom Co Annual Data
Trend Jul21 Jul22 Jul23
Gross Margin %
25.39 18.85 21.01

The Good Shroom Co Quarterly Data
Mar20 Mar21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.25 27.24 2.81 32.03 35.89

Competitive Comparison of The Good Shroom Co's Gross Margin %

For the Beverages - Non-Alcoholic subindustry, The Good Shroom Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Good Shroom Co's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Good Shroom Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Good Shroom Co's Gross Margin % falls into.



The Good Shroom Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Good Shroom Co's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=0.5 / 2.394
=(Revenue - Cost of Goods Sold) / Revenue
=(2.394 - 1.891) / 2.394
=21.01 %

The Good Shroom Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=0.2 / 0.691
=(Revenue - Cost of Goods Sold) / Revenue
=(0.691 - 0.443) / 0.691
=35.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Good Shroom Co  (OTCPK:TGSHF) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Good Shroom Co had a gross margin of 35.89% for the quarter that ended in Jan. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Good Shroom Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Good Shroom Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Good Shroom Co (The Good Shroom Co) Business Description

Comparable Companies
Traded in Other Exchanges
Address
324 Marie-Curie, Vaudreuil, QC, CAN, J7V 5V5
The Good Shroom Co Inc operates a portfolio of brands that include traditional cannabis and beverage products. The company exists to promote the use of mushrooms through its brands; The Teo Nan brand is a functional mushroom beverage range serving the American and Canadian wellness market via DTC and retail; The Nordique Royale is a premium quality hash; and The Velada brand is a range of CBD-infused functional mushroom beverages serving the Canadian legal cannabis market.

The Good Shroom Co (The Good Shroom Co) Headlines

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